No more Amazon for Ca affiliates..



The back of my head itches. I think I'll blow it off with a shotgun. - Kurt Cobain

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My latest and greatest update:

Bodybuilding.com is terminating me too. To avoid it, I changed the address in CJ.com to my Texas business address. And yes, it's in Austin. Lived there two years, I'll be back there in Sept for a bit :)

Texas is a stop-gap measure until I get Wyoming/Nevada setup, but it'll do. This affects more than just Amazon. Other businesses will follow suit. BB.com's affiliate manager told me that to even go with the law, it'd take months from the IT end -- not worth it, so they're just dropping everyone.

If I were to go overseas, it'd be Hong Kong without a doubt. I have some friends there and love the place. But I'm not sure if all the businesses I work with would affiliate with an international corp. I'm simply not at that point yet....
 
[ame=http://www.youtube.com/watch?v=uCEeAn6_QJo]YouTube - ‪Tool - Ænema [uncut version - hq - fullscreen]‬‏[/ame]
 
Do you go to any of the startup events around Dallas? Each week there seems to be at least one happy hour, hackathon, poker game, startup incubator conference, or just random shit going down at CoHabitat and Techwildcatters. Dallas is pretty techy.

Fact is I can't find any good ones. I have networked a ton around the area. I have been to a few meetups. Any coming up you suggest?
 
So for example if a consumer in Nevada was referred by an affiliate based in California, tax is still collected?
 
America = fat girls + intrusive government

East Asia = hot slim girls + government that mostly leaves you alone


Go international, bros
 
Amazon's affiliates are website publishers who post advertisements and coupons for the retailer on their websites. These affiliates made revenue of $1.9 billion in 2010, according to Rebecca Madigan, executive director of Performance Marketing Association

2012 CA Amazon affiliate revenue: $0.

Quick, what is 7.25% of $0 ???

Then subtract the tens of millions they were already collecting in state income tax from these affiliate earnings.

Isn't this a massive loss of tax revenue for the state?
 
Just playing devil's advocate here ... Do most businesses/sites affected by this operate on tiny margins like Amazon? Granted Amazon is a huge chunk of business to lose, but I can't imagine every business with an affiliate program is going to stop accepting traffic via CA affiliates over a relatively small 7.25% (if that's what it is). Still don't see the state making much more, if any, additional revenue, but I don't think 2012 CA affiliate revenue will be $0.
 
Just playing devil's advocate here ... Do most businesses/sites affected by this operate on tiny margins like Amazon? Granted Amazon is a huge chunk of business to lose, but I can't imagine every business with an affiliate program is going to stop accepting traffic via CA affiliates over a relatively small 7.25% (if that's what it is). Still don't see the state making much more, if any, additional revenue, but I don't think 2012 CA affiliate revenue will be $0.

I've always read that Amazon would play ball if it was a consistent tax rate, hence why they are pushing for this to be addressed at the federal level. They don't want the overhead of managing tax rates as they fluctuate be a few percentage points between the hundreds of municipalities in each state (and probably thousands in CA).
 
I've always read that Amazon would play ball if it was a consistent tax rate, hence why they are pushing for this to be addressed at the federal level. They don't want the overhead of managing tax rates as they fluctuate be a few percentage points between the hundreds of municipalities in each state (and probably thousands in CA).

Businesses do that all the time. Implementing different tax rates is not the problem. They just don't want to pay the taxes, or put it on the buyers. People want to pay the cheapest price for something. If they have to pay a tax on something, they might as well go to their local Barne's and Noble / Target / Walmart (these are the businesses that are lobbying for this bill).
 
^Yer both wrong. The problem is that half of the shit amazon is "Selling" isn't theirs.

They have a complex biz model which keeps half of their stock in warehouses, and the other half you or I could have in our garage right now, to be sold ebay-like, directly to the customers shopping at amazon.com.

If everything amazon.com sold was warehoused, there would be no discussion here. They'd be ok paying a consistant tax rate.

But how in the fuck can anyone expect them to ask all of those tens of thousands of Independent sellers scattered across the nation to start collecting taxes, especially across state lines?!?

Anyone thinking it is even remotely possible for amazon to "play ball" on this tax is simply not versed in the facts.
 
It seems to me like they don't care how you get around the ban as long as they have no fully direct ties with California based associates. Got the email below, yesterday. It basically says that I can still collect Amazon revenue from VigLink, even if the sales referred from my sites go directly to Amazon since VigLink is the affiliate and not me.

[FONT=arial, helvetica, sans-serif][FONT=arial, helvetica, sans-serif]An Important Update for California VigLink Users

Dear California VigLink Customer:

Governor Brown signed into law on Thursday the state budget for the 2011 - 2012 fiscal year in California. One of the provisions contained in the budget is an affiliate nexus tax that requires online merchants to collect sales tax on Internet purchases if their affiliate program has any affiliates located within the state.

As a result of this legislation, Amazon has shut down it's California Associates Program and sent termination notices to all it's affiliates located in California, effective Wednesday June 29, 2011 (yesterday).

However, we would like to reassure you that we do not expect any interruption in Amazon coverage within your VigLink account. VigLink has been working closely with the Amazon team over the past several days to ensure that VigLink's entire customer base, including our customers based in California, will continue to earn revenue with Amazon through VigLink.

We will share the full details of this new program with you shortly, but due to the sensitivity and concerns surrounding this issue we wanted to reach out to you now with this very exciting news. We hope you enjoy the upcoming holiday weekend and we look forward to sharing more information with you in the next several days.

Thank you for your continued business.

Regards[/FONT],
[/FONT]
 
This will help. States without an income tax:

Alaska
New Hampshire
Tennessee
Florida
South Dakota
Washington
Nevada
Texas
Wyoming


Derp Derp. While this protects you from Amazon for now, you might as well slim that list down to states with no corp tax. Just because there is no income tax, that doesnt mean there isnt income tax on corps.

I mean, if your gonna up and move you might as well move it somewhere where there is no personal and no CORP income tax. Here is the new list:

Nevada – has no individual or corporate income tax

South Dakota – no individual income tax, but has a state corporate income tax on financial institutions. ( wont effect most of us )

Texas – no individual income tax or corporate income tax but does have a gross margin tax on business. ( not sure about this one )

Wyoming has no individual or corporate income taxes

When you think about it though, if your gonna set all this up in another state, you might as well spend an extra week and go corp offshore like in Bahama's or someplace. Not to evade taxes, but for the added security of your privacy as well.
 
Derp Derp. While this protects you from Amazon for now, you might as well slim that list down to states with no corp tax. Just because there is no income tax, that doesnt mean there isnt income tax on corps.

I mean, if your gonna up and move you might as well move it somewhere where there is no personal and no CORP income tax. Here is the new list:

Nevada – has no individual or corporate income tax

South Dakota – no individual income tax, but has a state corporate income tax on financial institutions. ( wont effect most of us )

Texas – no individual income tax or corporate income tax but does have a gross margin tax on business. ( not sure about this one )

Wyoming has no individual or corporate income taxes

When you think about it though, if your gonna set all this up in another state, you might as well spend an extra week and go corp offshore like in Bahama's or someplace. Not to evade taxes, but for the added security of your privacy as well.

LLCs are not corporations though. Pass thru